How to Calculate a Discount

5 min read · Updated September 26, 2026 · by the SolveCalcPro editorial team

How to Calculate a Discount – feature image

Discounts are percentages, so a few shortcuts make sale prices easy to work out in your head. This guide covers one discount, stacked discounts and the order in which tax is added.

One discount

Sale price = price × (1 − discount%). 20% off $200: you save $40.00 and pay $160.00.

Stacked discounts do not add

20% off followed by an extra 10% is not 30% off. The second discount applies to the reduced price: $200 → $160 → $144, a combined discount of 28%.

Adding sales tax

Tax goes on the discounted price. At 8% tax on $144, the total is $155.52.

Mental shortcuts

  • 10% off: move the decimal one place left and subtract.
  • 25% off: pay three-quarters.
  • 30% off: multiply by 0.7.
  • Work backwards: if you paid $144 after 20% off, the original was 144 ÷ 0.8 = $180.

Try the discount calculator.

Practice questions

Test yourself, then tap to check. Answers are calculated by the tools linked below.

  1. A $120 jacket is 30% off with an extra 10% coupon and 7% tax. What is the total?
    Show answer

    Sale price (before tax): $75.60

  2. What is 35% of 240?
    Show answer

    35% of 240: 84

  3. A $64.90 receipt includes 9% sales tax. What was the price before tax?
    Show answer

    Price before tax (net): $59.54 · Sales tax included: $5.36

Frequently asked questions

How do I calculate a percentage discount?

Multiply the price by the percentage as a decimal to get the saving, then subtract it. Or multiply by (1 − discount).

Do two discounts add together?

No. The second applies to the already-reduced price, so the combined discount is smaller than their sum.

Is tax added before or after the discount?

Usually after: tax is charged on the discounted price.

How do I find the original price from the sale price?

Divide the sale price by (1 − discount). $144 after 20% off was 144 ÷ 0.8 = $180.

Try it yourself

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